14 September 2011
We are architects and recently took a project in which the company would pay us the lum sum money for the project and we would make the paymant to the other agencies out of that money. we hv opened a separate bank account for the same. However the problem is that when our client paid us the project money, they deducted TDS @10%. As aresult of this the whole amt would be considered as our fees which creates problem for us. the company has SAP and say they dont hv way out. Please guide.
14 September 2011
there is need to make to agreement between to you and company, one for your consultancy fee and last for reimbursement of expenses related to supply of material.
however if you has to directly make the payment to other agencies and tds is also applicable on that payment therefore its your responsibility to deduct tds on such payments.
CAclubindia
